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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Radico Khaitan Ltd

About the Company - Radico Khaitan Ltd

Radico Khaitan Ltd. is a Public Limited Listed company incorporated on 21/07/1983 and has its registered office in the State of Uttar Pradesh, India. Company’s Corporate Identification Number(CIN) is L26941UP1983PLC027278 and registration number is 027278. Currently Company is involved in the business activities of Distilling, rectifying and blending of spirits; ethyl alcohol production from fermented materials. Company’s Total Operating Revenue is Rs. 2868.01 Cr. and Equity Capital is Rs. 26.73 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Beverages & DistilleriesRampur Distillery Bareilly Road, Rampur Uttar Pradesh 244901info@radico.co.in
http://www.radicokhaitan.com
Management
NamePosition Held
Dr. Lalit KhaitanChairman & Managing Director
Mr. Abhishek KhaitanManaging Director
Mr. Krishan Pal SinghWhole Time Director
Dr. Raghupati SinghaniaIndependent Director
Mr. Sarvesh SrivastavaIndependent Director
Mr. Tushar JainIndependent Director
Mr. Sharad JaipuriaIndependent Director
Ms. Sushmita SinghaIndependent Director

Radico Khaitan Ltd. Share Price Update

Share PriceValue
Today₹1,724.60
Previous Day₹1,746.50

Basic Stock Data of Radico Khaitan Ltd

Market Cap 22,262 Cr.
Current Price 1,665
High / Low1,885/1,069
Stock P/E94.2
Book Value 168
Dividend Yield0.18 %
ROCE11.6 %
ROE9.82 %
Face Value 2.00

Data Source: screener.in

Competitors of Radico Khaitan Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Som Distilleries & Breweries Ltd 2,010 Cr. 259390/11224.4 66.50.10 %15.6 %18.1 % 5.00
Tilaknagar Industries Ltd 4,367 Cr. 227291/95.532.6 29.60.11 %15.5 %23.9 % 10.0
United Spirits Ltd 82,493 Cr. 1,1341,176/73164.8 93.60.34 %20.0 %17.5 % 2.00
United Breweries Ltd 45,497 Cr. 1,7211,914/1,342134 1520.43 %11.4 %8.27 % 1.00
Industry Average33.25 Cr12263.9585.430.25%15.63%16.94%4.5

Radico Khaitan Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales630684689598709757813757761792832954925
Expenses523560588506597638733665671695753834804
Operating Profit107125101921111198093909779120121
OPM %17%18%15%15%16%16%10%12%12%12%9%13%13%
Other Income43126222413111
Interest555533234691212
Depreciation13141415161716171717202426
Profit before tax9210894789410163777076518483
Tax %22%26%22%23%26%24%26%24%26%25%27%25%26%
Net Profit72817460697746585257376362
EPS in Rs5.426.035.514.485.185.743.474.363.884.272.794.734.63

Radico Khaitan Ltd Quarterly Chart

Radico Khaitan Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,1121,2101,3781,4001,6431,6571,7972,0632,3952,3742,8593,1333,503
Expenses9411,0201,1821,2201,4521,4441,5261,7132,0231,9652,4572,7753,086
Operating Profit171190196180191214270351372409402359417
OPM %15%16%14%13%12%13%15%17%16%17%14%11%12%
Other Income826343636182613-15201196
Interest59718590858169363222132240
Depreciation33353938434241425354657187
Profit before tax871091068799109187286273353335275295
Tax %27%29%33%22%26%26%34%34%17%23%25%26%
Net Profit647771687380123188228271252204219
EPS in Rs4.805.815.365.085.526.029.2614.1017.0420.2618.8615.2916.42
Dividend Payout %17%14%15%16%14%13%11%9%12%12%16%20%

Radico Khaitan Ltd Profit & Loss Yearly Chart

Radico Khaitan Ltd Growth

Compounded Sales Growth
10 Years:10%
5 Years:12%
3 Years:9%
TTM:24%
Compounded Profit Growth
10 Years:10%
5 Years:10%
3 Years:-6%
TTM:11%
Stock Price CAGR
10 Years:26%
5 Years:34%
3 Years:42%
1 Year:47%
Return on Equity
10 Years:12%
5 Years:14%
3 Years:13%
Last Year:10%

Radico Khaitan Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital27272727272727272727272727
Reserves6427027548039371,0031,1151,2881,4941,7371,9602,1252,215
Borrowings650768904849960799592337400288202754883
Other Liabilities315308332411390392498581540543555762828
Total Liabilities1,6341,8042,0172,0892,3132,2212,2322,2332,4602,5952,7443,6683,953
Fixed Assets5025295705737297046857147438108211,2131,601
CWIP558122201618383032775
Investments11110910898205205205155155155135135135
Other Assets1,0161,1611,3301,4181,3761,3091,3211,3471,5431,5921,7571,9932,142
Total Assets1,6341,8042,0172,0892,3132,2212,2322,2332,4602,5952,7443,6683,953

Radico Khaitan Ltd Reserves and Borrowings Chart

Radico Khaitan Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 142-66137250-3925231630960370221224
Cash from Investing Activity -12846-141-83843-21-7-67-76-108-684
Cash from Financing Activity -2153-172-87-234-293-2269-183-134482
Net Cash Flow12-5-1-5-42212762111-2122

Radico Khaitan Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days1141311391251361371281141251079696
Inventory Days120116118164202199231270209283234292
Days Payable78737195129125159183148151102112
Cash Conversion Cycle155174185194209211201201187239228277
Working Capital Days204194224214173142143130146147133127
ROCE %13%13%12%11%10%10%14%19%18%19%16%12%

Radico Khaitan Ltd Financial Efficiency Indicators Chart

Radico Khaitan Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters40.31%40.30%40.29%40.27%40.27%40.27%40.27%40.27%40.27%40.27%40.27%40.26%
FIIs18.25%19.46%19.78%20.06%20.48%19.28%18.35%18.86%18.94%18.63%18.26%18.18%
DIIs16.96%17.10%18.16%18.64%18.61%19.24%20.26%22.85%23.23%23.51%23.76%23.92%
Government0.02%0.02%0.02%0.02%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public24.46%23.11%21.75%21.00%20.64%21.21%21.13%18.01%17.57%17.59%17.71%17.63%
No. of Shareholders64,24965,13074,25899,3841,22,4841,46,3901,46,9861,29,0771,25,4731,17,0891,07,4651,15,430

Radico Khaitan Ltd Shareholding Pattern Chart

No. of Radico Khaitan Ltd Shareholders

Radico Khaitan Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Aditya Birla Sun Life Flexi Cap Fund30146492.5454.1
Nippon India Small Cap Fund22289070.82335.74
Tata Equity P/E Fund - Regular Plan14700003.42221.43
Tata Equity P/E Fund - Regular Plan - Trigger Option A 5%14700003.42221.43
Tata Small Cap Fund13192763.13198.72
HDFC Small Cap Fund - Regular Plan11816630.7177.99
Nippon India ELSS Tax Saver Fund11100001.28167.2
Kotak Multicap Fund10898532.32164.16
DSP Flexi Cap Fund9795871.56147.56
Bandhan Sterling Value Fund7000001.46105.44

Radico Khaitan Ltd ROCE Trend

Radico Khaitan Ltd EPS Trend

Radico Khaitan Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)16.4819.7020.7517.1614.55
Diluted EPS (Rs.)16.4819.7020.7417.1514.54
Cash EPS (Rs.)20.5923.4524.2920.9717.28
Book Value[Excl.RevalReserv]/Share (Rs.)165.17151.63134.23115.55100.12
Book Value[Incl.RevalReserv]/Share (Rs.)165.17151.63134.23115.55100.12
Revenue From Operations / Share (Rs.)235.11214.55181.04181.75157.18
PBDIT / Share (Rs.)27.5130.6432.1228.5327.26
PBIT / Share (Rs.)22.2125.7928.0824.6024.08
PBT / Share (Rs.)20.5524.8126.4420.4221.42
Net Profit / Share (Rs.)15.2918.5920.2617.0414.10
NP After MI And SOA / Share (Rs.)16.4819.6920.7517.1614.55
PBDIT Margin (%)11.7014.2817.7415.6917.34
PBIT Margin (%)9.4412.0115.5113.5315.31
PBT Margin (%)8.7411.5614.6011.2313.62
Net Profit Margin (%)6.508.6611.189.378.96
NP After MI And SOA Margin (%)7.019.1711.469.449.25
Return on Networth / Equity (%)9.9812.9815.4514.8514.53
Return on Capital Employeed (%)11.2816.2019.7920.0321.81
Return On Assets (%)5.929.4610.219.228.62
Long Term Debt / Equity (X)0.120.000.000.000.01
Total Debt / Equity (X)0.310.090.150.250.24
Asset Turnover Ratio (%)0.971.050.931.030.93
Current Ratio (X)1.732.471.981.691.57
Quick Ratio (X)1.071.641.391.241.11
Inventory Turnover Ratio (X)3.063.082.873.463.12
Dividend Payout Ratio (NP) (%)18.1912.189.638.428.27
Dividend Payout Ratio (CP) (%)13.769.778.066.856.79
Earning Retention Ratio (%)81.8187.8290.3791.5891.73
Cash Earning Retention Ratio (%)86.2490.2391.9493.1593.21
Interest Coverage Ratio (X)16.6331.2619.4912.0510.25
Interest Coverage Ratio (Post Tax) (X)10.2419.9713.298.966.30
Enterprise Value (Cr.)16532.1611939.327632.633948.045578.60
EV / Net Operating Revenue (X)5.264.163.161.632.66
EV / EBITDA (X)44.9529.1517.7910.3615.34
MarketCap / Net Operating Revenue (X)5.084.143.101.472.51
Retention Ratios (%)81.8087.8190.3691.5791.72
Price / BV (X)7.235.854.182.313.95
Price / Net Operating Revenue (X)5.084.143.101.472.51
EarningsYield0.010.020.030.060.03

Radico Khaitan Ltd Profitability Ratios (%)

Radico Khaitan Ltd Liquidity Ratios

Radico Khaitan Ltd Liquidity Ratios (%)

Radico Khaitan Ltd Interest Coverage Ratios (X)

Radico Khaitan Ltd Valuation Ratios

Fair Value / Intrinsic Value of Radico Khaitan Ltd

Fair Value: ₹1556.87

The stock is overvalued by 6.49% compared to the current price ₹1665

*Investments are subject to market risks

Strength and Weakness of Radico Khaitan Ltd

StrengthWeakness
  1. The company has higher reserves (1,290.38 cr) compared to borrowings (645.08 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (1.62 cr) and profit (200.08 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 24.95 and average Dividend Yield of 13.16%.
  2. The stock has a low average ROCE of 13.92%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 164.75, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 205.08, which may not be favorable.

Should I Buy Radico Khaitan Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Radico Khaitan Ltd:
    1. Net Profit Margin: 6.50%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 11.28% (Industry Average ROCE: 15.63%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 10.24
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 1.07
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✗ Stock P/E: 94.2 (Industry average Stock P/E: 64.23)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.31
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Radico Khaitan Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE